RC in IBPS PO Pre - 16 Oct 2016 exam.....

Britain and the European Union may be getting over the initial shock of the British demand
for a divorce. Now comes the bitter fight. Already, both sides have staked out very different
positions on immigration, an issue that promises to be the most contentious in the separation
proceedings.
Germany, France and other union members have argued that Britain must maintain open
borders if it is to enjoy favourable access to Europes single market. Many British voters who
chose to leave the bloc in June would like to see those borders more tightly regulated by the
British government. However this issue is resolved, both sides have an obligation to find
ways to minimize the economic damage to Britain and the rest of the union that a new
relationship could bring. Formal negotiations are expected to start by the end of March.
The British prime minister, Theresa May, wants unfettered access to the European market, the
worlds largest. Under her vision, Britains manufacturers would be able to sell products to
customers in the bloc without paying duties, and bankers in London could serve businesses
and investors anywhere in the union. But she and her colleagues insist on restricting
immigration from other European Union countries.
Those demands are unacceptable to leaders like Chancellor Angela Merkel of Germany and
President Franois Hollande of France who insist that the union can accept the free
movement of goods, services and capital only with countries that also accept the free
movement of people. There will be no compromises in this regard, Donald Tusk, the
president of the European Council said on Thursday. The unions agreements with three
nonmember countries Iceland, Lichtenstein and Norway include all four freedoms.
Those countries also abide by the unions regulations and contribute to its budget.
A common market cannot function properly if people are not allowed to move without having
to obtain visas. Imagine how much more difficult it would be to do business in the United
States if companies could not easily relocate employees to different states or if people could
not freely move to take advantage of job opportunities.
The indivisibility of the four freedoms is also necessary to send a clear message to politicians
and voters in France, Italy and other countries in the bloc who argue that their countries
should also leave the union. Allowing Britain to cherry-pick its membership rules would
encourage these separatists, greatly undermining the European project and making the
region less stable, less prosperous and less tolerant. It would also set a dangerous example
for other, non-European countries, the United States included, where politicians have
demonized immigrants at a time when many people have seen incomes stagnate and are
increasingly fearful of terrorism.
Interestingly, polls show that many Britons would accept a deal that kept the countrys
borders open to other Europeans. In July, after the referendum, two-thirds of respondents

said access to the European market should be a priority in negotiations while only 31 percent
said the same about restricting free movement. There are 2.9 million people from other
European Union countries living in Britain, making up 4.6 percent of the countrys
population. About 1.2 million Britons live elsewhere in the union.
Even if it refuses to budge on immigration, Britain might still be able to negotiate a trade
agreement with the union that gives it some modest economic benefits, like duty-free access
for certain products. But the union is highly unlikely to give British banks and companies
passporting rights to operate throughout the bloc. Losing these privileges would be a big
blow to the economy, which is one reason the pound has fallen nearly 18 percent against the
dollar since the referendum. That should be reason enough for Mrs. May to compromise on
immigrationBritain and the European Union may be getting over the initial shock of the
British demand for a divorce. Now comes the bitter fight. Already, both sides have staked out
very different positions on immigration, an issue that promises to be the most contentious in
the separation proceedings.
Germany, France and other union members have argued that Britain must maintain open
borders if it is to enjoy favorable access to Europes single market. Many British voters who
chose to leave the bloc in June would like to see those borders more tightly regulated by the
British government. However this issue is resolved, both sides have an obligation to find
ways to minimize the economic damage to Britain and the rest of the union that a new
relationship could bring. Formal negotiations are expected to start by the end of March.
The British prime minister, Theresa May, wants unfettered access to the European market, the
worlds largest. Under her vision, Britains manufacturers would be able to sell products to
customers in the bloc without paying duties, and bankers in London could serve businesses
and investors anywhere in the union. But she and her colleagues insist on restricting
immigration from other European Union countries.
Those demands are unacceptable to leaders like Chancellor Angela Merkel of Germany and
President Franois Hollande of France who insist that the union can accept the free
movement of goods, services and capital only with countries that also accept the free
movement of people. There will be no compromises in this regard, Donald Tusk, the
president of the European Council said on Thursday. The unions agreements with three
nonmember countries Iceland, Lichtenstein and Norway include all four freedoms.
Those countries also abide by the unions regulations and contribute to its budget.
A common market cannot function properly if people are not allowed to move without having
to obtain visas. Imagine how much more difficult it would be to do business in the United
States if companies could not easily relocate employees to different states or if people could
not freely move to take advantage of job .